Sterling Construction Company Inc (STRL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,115,760 | 1,972,230 | 1,769,440 | 1,414,370 | 1,226,740 |
| Property, plant and equipment | US$ in thousands | — | — | 274,897 | 228,836 | 143,183 |
| Fixed asset turnover | — | — | 6.44 | 6.18 | 8.57 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,115,760K ÷ $—K
= —
The fixed asset turnover ratio for Sterling Construction Company Inc. reflects the efficiency with which the company utilizes its fixed assets to generate sales. An analysis of the data from December 31, 2020, through December 31, 2023, indicates notable trends.
In 2020, the ratio stood at 8.57, suggesting that the company generated approximately 8.57 dollars in sales for every dollar invested in fixed assets. This high ratio typically signifies an efficient use of fixed assets during that period.
By 2021, the ratio declined substantially to 6.18, indicating a decrease in the efficiency of asset utilization. This reduction could be attributed to several factors, such as increased asset base without a proportional increase in sales, operational inefficiencies, or strategic investments that temporarily suppressed asset turnover.
In 2022, the ratio experienced a slight improvement to 6.44, reflecting a marginal recovery in asset utilization efficiency. While still below the 2020 level, this upward movement might point to operational adjustments or sales improvements relative to fixed assets.
Data for 2023 and 2024 are not available, which precludes analysis of trends beyond 2022. The absence of these figures could suggest that the company did not report the ratio for those years, or data was not accessible at the current period.
Overall, the trend from 2020 to 2022 indicates a decline in fixed asset turnover, pointing to decreased efficiency in asset utilization over this period. The partial recovery in 2022 suggests some improvement, but the ratio remains significantly lower than the 2020 figure. This pattern warrants further investigation into underlying factors influencing asset management and sales performance during these years.
Peer comparison
Dec 31, 2024